Central Bank of Nigeria
Foreign Private Investment, Private Investment, Nigeria
Although the 1988 survey on Foreign Private Investment showed that there was an increase in the net capital inflow through the Nigerian/foreign jointly-owned companies, a closer look revealed that the 22 per cent increase in the level of the gross inflow of capital over the 1987 level was merely due to naira exchange rate depreciation of 222 per cent between December 1987 and December 1988. Net investments by alien entrepreneurs continued to be dominated by unsettled liabilities to their overseas trading partners while the relative share of equity investments was relatively small, inspite of the Structural Adjustment Programme (SAP) which raised the financial capital requirements of the companies. A relatively better performance was observed in the textiles and food products sub-sectors of the manufacturing and processing sector possibly due to their comparative advantage in integrating backward in addition, evidence of technological obsoleteness featured ,n the analysis of the fixed assets of these companies. The survey showed that the parent/affiliate enterprises, which are more interested in controlling the companies they invest in, dominate the structure of foreign shareholdings.
CBN Economic and Financial Review
Central Bank of Nigeria (1990). Foreign Private Investment Survey in 1988. CBN Economic and Financial Review. 28(4), 55-93.